Prime Sydney homes hit new price high

Australia’s finest outprice those in Shanghai and other global cities

The average price of prime homes in Sydney hit AUD27,244 (USD19,179) per square metre in 2018, reported Knight Frank this week.

The figure is the highest on record for the New South Wales capital, topping the average of AUD26,413 per square metre set in 2017, the consultancy noted.

Among 10 global cities tracked by Knight Frank, Sydney outranks Shanghai that had an average price of USD17,417 per square metre last year for prime homes. It is also more expensive than Berlin with USD12,577 per sqm; Miami (USD10,768 per sqm); and Dubai (USD6,729 per sqm).

Prime properties, defined as the top five percent of a residential market by value, have been on the upswing in the Australian city for three consecutive years.

“This continues to demonstrate there are only a handful of local exclusive super-prime properties available in Sydney for the growing ultra-wealthy and billionaire population, and competition for these rare properties is driving prices up,” commented Knight Frank’s partner and head of Prestige Residential, Deborah Cullen.

More: Australia has world’s slowest-growing home prices

Many buyers of prime Sydney residences zero in on rare, “best-in-class” properties, especially waterfront homes with views of the city’s iconic harbour.

Knight Frank’s findings come against a general downturn in the nationwide housing market. With dwelling prices sinking 5.1 percent year-on-year in the first quarter of 2019, Australia placed last on Knight Frank’s latest Global House Price Index.

Hong Kong remains the priciest prime home market in the world, with an average prime unit in the Chinese SAR costing USD45,760 per sqm in 2018. New York and London rate second and third for highest prime home prices.